I am not an attorney, I am a judgment and debt referral specialist (Collection Broker). This article is my opinion, based on my experience in California, and laws vary in each state. If you ever want a strategy to use or legal advice, please contact a lawyer.

While there is a wide variation on how collection agencies work to collect money from debtors, now almost none now engage in the stereotypes of abuse that were more common a long time ago. Although there are bad apples in every profession, most debt collectors remain reasonable and polite, usually much more than the debtors.

Every collection agency starts with a letter and/or a phone call, because:

1) A small percentage of debtors pay after they get first notice of the debt, as a few realize this has become serious.


2) It provides the debtor a chance to explain their side of the story and contest the debt, because once in a while, the debt is not valid. A few examples of this are when the debtor filed for bankruptcy protection, or a judgment against them was vacated or has become expired.

3) Laws require that debtors get mailed full or mini “Miranda” wordings, telling them of their rights, how to dispute the debt, how to contact a government agency, etc.

The mini Miranda, has words similar to “I am NAME, of this BUSINESS-NAME, a debt collector representing CREDITOR-NAME. Information obtained during the course of this call will be used for the purpose of collecting the debt.” Similar words must be included in all phone conversations, and on all letters.

After some time has passed, usually 30 days, most collection agencies write or call again, until one of two things happen:

1) They succeed in making friends with the debtor, and figure a current or future payment plan. Once in a while, they may visit the debtor’s residence for friendly face-to-face discussions.

2) The debtor tells them in writing to stop all communications. This is somewhat like asking a painful tooth to stop hurting, because it doesn’t cease collection actions, and debtors will still receive all legal notices. Sometimes the next step is putting the debt on the debtor’s credit report. Then more waiting, and if there is not a judgment yet, sometimes they sue the debtor to get a judgment. Getting a judgment is the key to being able to request that a sheriff seize the debtor’s assets.

If there is a judgment, many collection agencies hire private investigators to find the debtor’s assets, and their lawyers to recover the judgment. Most collection agencies do not need to own your debt or judgment, because they work on their client’s behalf.

Most collection agencies charge between 25% to 50% of what is collected, depending on how new the debts are, how much is owed, and what fees they charge. At 50% there should be no upfront or any other costs, at 25% you should expect to pay some fees. On unlawful detainer judgments, most collections agencies charge an upfront fee.

A debt or judgment broker knows the best collection agencies, and brokers are easy to find with a web search.

Article Source: sooperarticles.com/business-articles/small-business-articles/way-collection-agencies-collect-judgments-664500.html

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JudgmentBuy.com – is the best and fastest judgment and debt solution, where Judgments and debts quickly get recovered by the very best – matched to your debtor. Mark Shapiro – Judgment and debt Broker – best quality free leads for collection agencies and contingency collection attorneys.Author: Mark Shapiro